Eastman Chemical Earnings:Here’s Why the Stock is Down Now

Eastman Chemical Co. (NYSE:EMN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.03%.

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Eastman Chemical Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 32.79% to $1.62 in the quarter versus EPS of $1.22 in the year-earlier quarter.

Revenue: Rose 26.69% to $2.31 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Eastman Chemical Co. reported adjusted EPS income of $1.62 per share. By that measure, the company beat the mean analyst estimate of $1.57. It missed the average revenue estimate of $2.37 billion.

Quoting Management: “Our portfolio of specialty businesses continued to deliver strong earnings in the first quarter despite uncertain global economic conditions,” said Jim Rogers, Chairman and CEO. “For full year 2013, we remain on track to achieve a fourth consecutive year of double-digit earnings growth while also generating strong cash flow.”

Key Stats (on next page)…

Revenue increased 6.36% from $2.17 billion in the previous quarter. EPS increased 36.13% from $1.19 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.72 and has not changed. For the current year, the average estimate has moved up from a profit of $6.32 to a profit of $6.41 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)